Chowgule Steam

This company is a part of the 90 years old Chowgule group of Goa but given the low fancy for the shipping sector and even lower fancy for this stock, it gets counted amongst penny stocks.  In terms of financial performance, the company had a loss of Rs.17 crore in Q4FY12 and in Q1FY13 it managed to turn around with a net profit at Rs.2.02 crore on the back of profit made on sale of property. More or less the same story was repeated in Q2Fy13. Net sales, on a YoY dropped 27% at Rs.4.36 crore and operating expenses far exceeded the topline and it had a loss at EBIT level at Rs.3.79 crore. But an other income of Rs.2.28 crore and an exchange gain of Rs.1.03 crore helped the company end the quarter with a net profit at Rs.1.48 crore.

The only fact worth given some consideration in the stock is the fact that as at 31st March 2012, the company was sitting on a cash balance of Rs.10.15 crore and its long term borrowings stand at Rs.18 crore. Its reserve currently is at Rs.111.36 crore. Its current market cap is at Rs.61 crore. It is putting up a port infrastructure and ship repair facilities at Jaigad and this is expected to on stream sometime in 2013.  Promoter’s stake is at 67.76 % and it has been giving a consistent dividend of 10 to 15% since 2005.